By Oliver Smith on Friday 2 October 2020
The high street bank becomes the latest to start working through its lending backlog.
With weeks left until the government’s Bounce Back Loan Scheme (BBLS) ends, HSBC has become the latest high street bank to stop offering new business bank accounts in order to deal with its BBLS backlog.
A bank spokesperson told The Telegraph: “As one of the only banks that remained open to applications from all UK businesses since the scheme’s launch, we received a huge level of demand. With the scheme closing on Nov 30, we need to focus our resources on fulfilling existing applications.”
HSBC joins Lloyds, Santander, TSB and many others who’ve already shuttered new accounts from being opened.
In the world of digital banking Starling is the only player currently offering bounce back loans and with new business accounts still being opened, although the bank cautions that it offers no guarantee that new account holders will be approved.
By July 2020 the bank had reached over £903m worth of BBLS and Coronavirus Business Interruption Loan Scheme (CBILS) lending.
Tide previously offered BBLS, but had to stop the scheme after it ran out of capital to continue offering the loans.
The deadline for new applications for bounce back loans is 30 November, but banks and lenders can continue processing these applications until 31 December.